I think if you are only turning properties over for short term profit and ordinary income, why burden yourself with the expense of an LLC? 

That's the debut for the $20K they would have sent in if they were an ordinary lender. 

No and yes.I can always, always contribute to a traditional IRA from any source of ordinary income (passive or unearned income cannot be contributed).

It's 4 bedrooms 3 bathrooms with partial lake views and a hot tub on the patio.

Nothing new or out of the ordinary. 

@Travis Elliott ,That income can only be used to offset the income from that building due to the fact that it is a part of your principal business.Passive income and Earned income have the sale rates. now if you business is a sole proprietorship it will be taxed subject to SE tax; however, otherwise it is Just ordinary income rates.The category of passive only affects the fact that losses can be limited.

If you can add an easy room (study, den, patio, etc), add easy square footage, or get a property that needs sweat equity, this allows your to continue taking the new earned equity out, and redeploying it for future investments. 

I felt like I found a good renter so all is set and what can go wrong till the renter slipped in the patio.

But it would show up as ordinary income for you.No, you can't just make up some number and pretend you spent money.

It’s a community of people that believe in “using ordinary garages to live extraordinary lives.”